Google Inc (NASDAQ:GOOG) purchased Nest Labs for $3.2 billion. Nest Labs is headed and co-founded by Tony Fadell, one of the persons behind the development of the iPod, the music player of Apple Inc (NASDAQ:AAPL).
In a statement, Larry Page, chief executive officer of Google Inc (NASDAQ:GOOG) said, “Nest’s founders Tony Fadell and Matt Rogers have built a tremendous team that we are excited to welcome into the Google family.”
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Nest Labs sells thermostat, smoke detectors
Page described some of the amazing products of Nest Labs that are currently available in the market including thermostats that allow consumers to save energy and smoke/Co alarms to help families keep their homes safe. “We are excited to bring great experiences to more homes in more countries and fulfill their dreams,” added Page.
Nest Labs is considered as one of the fast-growing brands in the emerging smart home sector.
The Nest Protect smoke and carbon-monoxide detector is innovative with light sensors and color cues, voice and gesture-based interactions, smartphone syncing and elegant design. The Nest Protect cost $129. The Nest Thermostat programs itself by learning the schedule and desired temperature of the owner of the home, and it can be controlled using a smartphone. The device costs $249.
On the other hand, Fadell said, “We’re thrilled to join Google. With their support, Nest will be even better placed to build simple, thoughtful devices that make life easier at home, and that have a positive impact on the world.”
Matt Rogers, co-founder of Nest Labs and former executive of software at Apple Inc (NASDAQ:AAPL) said the company with the support of Google Inc (NASDAQ:GOOG) will be in a better position to build simple, thoughtful devices that make life easier at home and providers positive impact to the world.
Google the only serious bidder
According to Google Inc (NASDAQ:GOOG), Fadell will remain as CEO of Nest Labs will and continue its operations under its own brand. According to some people familiar with the acquisition, Apple Inc (NASDAQ:AAPL) was not included among the entities interested in buying Nest Labs, and the search engine giant was the only company serious in acquiring it.
Earlier this month, Nest Labs previously secured another round of funding of as much as $150 million, giving the company a valuation of more than $2 billion.
Google Ventures, the venture capital arm of Google Inc (NASDAQ:GOOG) together with Shasta Ventures and Kleiner Perkins are the main supportors of Nest Labs. The search engine giant said the transaction is expected to be closed over the next few months and it is subject to customary closing conditions and regulatory approvals in the United States.